How To Analyze Market Breadth: Bullish Percent

There are a few different ways to analyze market breadth, a measure of health which identifies the number of stocks rising versus falling. Intuitively, we know that if more stocks are rising than falling then it means markets are probably going higher. The opposite holds true for a down market. Yet, our current market shows some deep divergences in breadth vs. the price index, namely very weak overall breadth yet a market within 2% of all time highs. Seemingly only a handful of stocks...

Whole Foods: Earnings, Options Activity

One of the more nuanced aspects of earnings season is the combination of analyst actions after earnings announcements and the coinciding activity in the Equity options. Typically analysts and research firms render their respective opinions and adjustments after the announcements of earnings, guidance, and conference calls of the companies. When earnings per share, revenues, and guidance beat analysts’ expectations, market participants typically witness upgrades, reiterations with price...

Tech Sector Poised For More Gains: QQQ

If you’ve been reading my commentary over the past five weeks on TraderPlanet you’ve probably noticed a couple that were focused on the Nasdaq ETF (QQQ). To me this has been a great way to filter out single stock earnings risk from the likes of Apple, Microsoft, Amazon, Facebook, and Google (3 went up, 2 moved lower) in the more volatile tech/social media area of the market. Moving forward to the present day, I’ve changed my tune from bearish to bullish (as of July 16th). On July 29th,...

It's Time To Add Intel To Your Portfolio

For the past few years, there has been a lot of talk about the death of the personal computer. Soon there will be a world where everyone will hold nothing but their smartphones, tablets and wrist computers. That itself sounds so science fiction not that long ago. I agree, personal computer sales are slowing as more and more consumers migrate across to the mobile world of smartphones and tablets, but from observation as well as from personal experience, these new gadgets are just an...

Gold Could Drop 50% From Its 2011 High

Gold peaked at just above $1900/oz back in 2011. Since then it has been working lower in fits and spurts and is now more than 40% off those peak prices. Looking at a weekly continuous chart of gold futures, it’s easy to see how gold has repeatedly declined into zones of support (as defined by the volume profile) and found buyers, however never enough to turn the trend of prices back to the upside. The high-volume areas (HVA’s) that were created on the rally during the years 2010 and 2011...

Central Bankers Recreating Reality

A hallucination is a fact, not an error; what is erroneous is a judgment based upon it. Bertrand Russell We will at some point in time publish a full in depth article in terms of how Central bankers have been actively employing psychological strategies to deceive the masses for generations. In essence, central bankers have been recreating reality, and the sad part is that the masses now assume that this altered reality is the new norm. We are going to illustrate this by highlighting...

Profit From “Hidden” Fundamentals Of Crude Oil

By: James Cordier, Michael Gross An outsider watching the prices of crude oil shift up or down may think this is some sort of random event. “Who is causing this?” gas buyers and clueless politicians often demand, as though an evil oil company executive is sitting in a room throwing a lever to turn the supply on or off. As an investor willing to do a little homework, however, you’ll find projecting price ranges for oil is a little less populist rhetoric and little more science and...

How To Develop True Trading Confidence

Brett found trading confidence elusive. "If only I was more confident, I'd be a better trader," Brett explained. What might cultivate more confidence? "Making more winning trades, of course." Sorry, that’s the wrong answer. The Source of True Trading Confidence Trading confidence doesn’t come from the number of winning trades, how much money was won, or other ‘statistical’ measures. True trading confidence comes from mastering the various skills needed to read the market and execute...

IPOs: Watch This Healthy Pet Food Maker

Before the market opens on Wednesday, July 22, healthy pet product maker Blue Buffalo Pet Products’ (BUFF) 29.5 million share IPO is expected to price within a range of $16-$18. The lead underwriters on the deal are JP Morgan and Citigroup. BUFF’s IPO comes on the heels of another healthy pet food IPO, Freshpet (FRPT), which went public on November 7, 2014. Taking a look back on how that IPO fared, its’ 10.4 million share IPO priced at $15, above the $12-$14 range, but then slid lower over...

Tanger (SKT): A Bargain For Income Investors

Why Tanger Factory Outlet Centers (SKT) Is a Bargain for Income Investors With global interest rates still near record lows (the German ten-year yield is at 0.8%, while the U.S. ten year yield is at 2.3%, income investors face a difficult time finding meaningful yields in bond products or high-dividend stocks without taking substantial risks. Should inflation unexpectedly rise later this year, bond prices would also underperform. Based on my macroeconomic analysis, there remains pockets...

How To Profit In Thin Liquidity Environment

It is a fact that liquidity in the markets has been decreasing for some time now. This is not just a feature of the holiday period, but certainly is more noticeable between mid July to around the third week in August. Thinning liquidity is in part due to the over mature long term cycle we are finding ourselves in. Banks cannot trade as they used to due to tightening of regulations, low interest rates having taken their toll on profits, and investors are nervous of the future. The closure...

Trading Psychology: Avoid The Prediction Trap

When I sit down to write for TraderPlanet, I typically mull over things that have occurred the same day in my coaching practice. It seems the fresher the experience, the more easily it can be milked for a few drops of insight. Tonight I had the pleasure of working with an aspiring futures trader, a corporate pilot by day who has dreams of retiring from flying and leveraging his navigational abilities to become a successful private trader. This is indeed a dream shared by many. What’s...